30-Second Overview
Taiwan’s electric vehicle industry chain covers a complete ecosystem, from battery materials and components to systems integration. Under the government’s 2050 net-zero transition policy, Taiwan has set a 2030 electrification target for passenger transport vehicles, with public transportation given priority. Taiwan has already built a comprehensive charging and battery-swapping network in the electric scooter sector, and its fast-charging specification for electric scooters has been incorporated by the IEC into international standards. Taiwan’s industrial strengths are concentrated in semiconductors, battery materials, and motor control systems, but breakthroughs are still needed in complete-vehicle manufacturing and battery cell technology. Development is being accelerated through international cooperation and technology transfer.
Keywords: electric vehicle industry chain, battery technology, charging infrastructure, net-zero transition, vehicle electrification
Why It Matters
The development of the electric vehicle industry carries multiple layers of strategic significance for Taiwan. The transport sector accounts for 14% of Taiwan’s greenhouse gas emissions; electrification is a major pathway for carbon reduction and a key part of the 2050 net-zero target. For industry, the shift toward the electric vehicle supply chain means moving from traditional automotive parts contract manufacturing into high-value-added electronic systems integration, while reducing dependence on imported oil.
- Improved air quality: The zero-emission characteristics of electric vehicles help improve urban air quality
- International competitiveness: Capturing opportunities in the global electric vehicle market helps sustain Taiwan’s manufacturing advantage
- Employment opportunities: Electric vehicle-related industries are estimated to create 200,000 jobs
Global Electric Vehicle Market Trends
Rapid Market Growth
Global electric vehicle sales rose from 3.1 million units in 2020 to 14.2 million units in 2023, growing nearly fivefold in three years, with a compound annual growth rate of 35%. China dominates the global market with a 60% share, followed by the European Union and the United States in second and third place.
Major market distribution (2023):
China accounted for 60% of the global electric vehicle market with 8.5 million units; the European Union ranked second with 3.1 million units, or a 22% market share; and the United States ranked third with 1.5 million units, or 11%. Japan, South Korea, India, and other regions together accounted for approximately 1 million units.
Technology Development Trends
The evolution of electric vehicle technology spans three dimensions: battery chemistry, autonomous driving, and business models. These dimensions are accelerating their convergence with one another.
Battery technology breakthroughs:
The cost of lithium iron phosphate batteries (LFP) has fallen by 70%, while the commercialization timeline for solid-state batteries is also accelerating. Fast-charging technology has reduced charging time from 30 minutes to 15 minutes, and battery density has reached 300 Wh/kg.
Autonomous driving integration:
Level 3 autonomous driving is entering commercialization. Electric vehicles and intelligent driving systems are becoming deeply integrated, while vehicle-to-everything (V2X) technology is approaching maturity.
Business model innovation:
Three new business models—battery leasing, charging as a service (CaaS), and mobility as a service (MaaS)—are being implemented in multiple markets, changing traditional patterns of vehicle purchase and use.
Taiwan’s Electric Vehicle Industry Chain Layout
A Complete Industrial Ecosystem
Building on its foundation in semiconductor manufacturing, Taiwan has established a complete electric vehicle industry chain that spans upstream key materials, midstream component systems, and downstream complete-vehicle manufacturing.
Upstream: Key Materials
Battery materials:
Cathode materials are supplied by Kangpu (ProLogium) and Aleees-KY, while anode materials come from Formosa Plastics and Eternal Materials. Electrolytes are supplied by Swancor and Chi Mei Corporation, while separators are handled by BenQ Materials and China General Plastics.
Rare earth materials:
Taiwan has advantages in rare earth processing. Taiwan Magnetic Technology is the main local supplier of permanent magnetic materials, and Taiwan has established supply chain partnerships with Japan and Australia to diversify raw material risks.
Midstream: Components and Systems
Battery systems:
Battery cells are led by ProLogium, which has advanced solid-state battery technology. Battery management systems (BMS) are handled by Simplo and Dynapack, while battery packaging and systems integration are completed by Delta Electronics and Phihong Technology.
Motors and control systems:
Motors are supplied by Delta Electronics, TECO Electric & Machinery, and Tatung. Inverters are handled by Delta Electronics and Shihlin Electric, while controllers are supplied by Lite-On Technology and Wistron.
Power electronics:
Power semiconductors are supplied by TSMC, UMC, and Vanguard International Semiconductor. Charging chips are developed by MediaTek and Realtek, while power management ICs are mainly supplied by Richtek and Anpec.
Downstream: Complete-Vehicle Manufacturing
Electric scooters:
Gogoro dominates the market with its globally leading battery-swapping system. Kymco competes with its Ionex electric vehicle platform. Sanyang is developing products in cooperation with Delta Electronics, while China Motor has launched the eMOVING series.
Electric cars and electric buses:
In passenger vehicles, Yulon Group is developing its Luxgen electric brand. Foxconn has introduced three models: Model C (sedan), Model E (SUV), and Model T (bus). China Motor also offers e-moving commercial vehicles. Electric buses are supplied domestically by RAC Electric Vehicles and Tang Eng Iron Works, while Tron Energy has cooperated with BMW to introduce technology.
Foxconn Technology Group’s Electric Vehicle Layout
Foxconn’s comprehensive layout in electric vehicles spans three levels: platforms, products, and vertical integration. Centered on the MIH open platform, it aims to attract a supplier ecosystem.
The MIH electric vehicle open platform was established in 2020, with more than 2,000 companies joining the alliance1. By lowering the threshold for electric vehicle development through an open software and hardware platform, it serves as Foxconn’s core tool for building an ecosystem.
Among the three mass-production models, the Model C is a luxury sedan with a range of 700 kilometers, the Model E is a luxury SUV scheduled for mass production in 2024, and the Model T is an electric bus that has entered operational testing.
Vertical integration strategy:
Foxconn is vertically integrating three key layers in the supply chain: batteries, through cooperation with CATL to establish a battery plant in Taiwan; semiconductors, through TSMC’s supply of automotive chips; and software, through the development of automotive operating systems and autonomous driving technology. In international cooperation, Foxconn has separately formed a joint venture with Stellantis, cooperated with the Indonesian government on a production base, and discussed electric vehicle cooperation with Saudi Arabia.
2030 Vehicle Electrification Policy2
Net-Zero Transition Strategy
Taiwan’s 2050 net-zero transition pathway identifies vehicle electrification as a core strategy, advancing in three stages: 35% electrification of passenger transport by 2030, 100% electrification of newly sold automobiles by 2040, and net zero in the transport sector by 2050.
Policy targets:
The phased targets are: 35% electrification of passenger transport vehicles and 100% electrification of newly purchased buses by 2030; 100% electrification of newly sold automobiles by 2040; and net-zero emissions in the transport sector by 2050.
The promotion strategy prioritizes public transportation as a demonstration field, accompanied by infrastructure-first deployment, localization of key technologies in the industry chain, and the improvement of the relevant legal and regulatory environment.
2030 Passenger Transport Vehicle Electrification Plan
The government has formulated separate promotion plans for passenger transport, taxis, and freight vehicles, pairing subsidies with target volumes to compel replacement:
For electric buses, the 2030 target is 8,000 vehicles. Each replacement may receive a subsidy of up to NT$10 million, along with five years of operating cost subsidies and support from 1,000 dedicated charging stations. For electric taxis, the 2030 target is 20,000 vehicles. Purchase subsidies range from NT$1 million to NT$1.5 million per vehicle, with preferential rates at public charging stations and support for platform cooperation. Freight vehicle electrification prioritizes light trucks, with a 2030 target of 30% electrification, demonstration projects in cooperation with the logistics industry, and an initial focus on last-mile delivery in metropolitan areas.
Charging Infrastructure Construction
The density and convenience of charging infrastructure directly affect consumers’ willingness to purchase electric vehicles. Taiwan’s public charging stations remain insufficient and must be substantially expanded between 2025 and 2030:
The construction targets are 7,200 public charging stations by 2025 and 25,000 by 2030. Fast-charging stations should cover highways at a density of one station every 20 kilometers, while metropolitan areas should reach a density of two to three stations per square kilometer.
Charging stations are divided by use scenario: DC fast-charging stations are located on highways, at interchanges, and in commercial districts; AC slow-charging stations cover residential communities, office buildings, and parking lots; ultra-fast charging is deployed along major corridors and transport hubs; and wireless charging is first tested in demonstration areas and specific road sections.
Charging service operating model:
Taiwan Power Company leads the construction of the basic charging network, while private operators are encouraged to invest in and operate charging services. Composite services, combining convenience stores and gas stations, improve ease of use, while smart management systems provide real-time information, reservation services, and dynamic pricing.
Battery Technology Development
Battery Technology Pathways
Taiwan’s battery technology development covers multiple technological pathways:
Lithium Iron Phosphate Batteries (LFP)
Technical characteristics:
- High safety and long cycle life
- Lower cost, suitable for large vehicles
- Good high-temperature performance
Taiwanese manufacturers:
- Aleees-KY: cathode material supplier
- Coremax Materials: battery cell manufacturing
- Delta Electronics: battery systems integration
Ternary Lithium Batteries (NCM/NCA)
Technical characteristics:
- High energy density and light weight
- Suitable for passenger vehicle applications
- Excellent fast-charging performance
Development challenges:
- Requires cobalt metal, resulting in higher cost
- Thermal runaway risks must be managed
- Cycle life is relatively shorter
Solid-State Batteries
Technical advantages:
- Energy density as high as 400 Wh/kg
- Significantly improved safety
- Supports fast charging
Taiwan’s leading technology:
ProLogium Technology is a global leader in solid-state battery technology. Its Dunkirk plant in France is expected to enter mass production in 20283, not 2026, and plant construction is currently advancing. In 2022, it signed a cooperation agreement with Mercedes-Benz and received investment from Formosa Plastics and China Development Financial.
Battery Industry Chain Challenges
Technical challenges:
Battery cell manufacturing technology is where the gap between Taiwan and major companies in China, Japan, and South Korea is most apparent. Economies of scale in production capacity also remain to be established.
Supply chain risks:
Key raw materials such as lithium, cobalt, and nickel are highly dependent on imports. Price volatility and geopolitical risks create hidden concerns over supply stability. Solutions include strengthening international technology cooperation, establishing strategic raw material reserves, and developing battery recycling technology to reduce dependence on raw materials.
The Successful Electric Scooter Model
Gogoro Ecosystem
Taiwan’s electric scooters occupy a leading position among comparable global markets, and Gogoro’s battery-swapping model is especially distinctive: it replaces “selling batteries” with “energy as a service,” allowing users to avoid bearing the risk of battery depreciation.
Innovative business model:
Gogoro replaces traditional battery sales with “energy as a service”: users pay a monthly subscription fee and obtain fully charged battery packs through GoStation swapping stations, without bearing the risk of battery depreciation. Gogoro also pursues an open platform strategy, cooperating with scooter manufacturers such as Kymco and Sanyang to share battery-swapping infrastructure.
Market results:
Gogoro’s share of Taiwan’s electric scooter market exceeds 90%. Its battery-swapping network covers more than 2,500 locations as of 20244, with more than 400,000 battery swaps per day and approximately 650,000 Gogoro riders as of 20244.
Technical standardization:
Gogoro’s fast-charging specification has received IEC international standard certification5. Its battery specifications are open to use by other manufacturers, helping align Taiwan’s electric scooter industry standards with international standards.
International expansion:
Gogoro has entered the Indian, Chinese, and Israeli markets, exporting its battery-swapping system through technology licensing and working with local governments to establish local swapping networks.
Completeness of the Industry Chain
Taiwan’s electric scooter industry chain is among the more mature in Asian markets, with local manufacturers covering complete vehicles, components, and charging and battery-swapping systems.
Taiwan’s electric scooter supply chain is highly complete: complete vehicles are mainly produced by Gogoro, Kymco, Sanyang, and Yamaha, with annual production capacity exceeding 500,000 units and some exports to European and American markets. For key components, motors are supplied by TECO and Tatung, controllers by Delta Electronics and Lite-On, and batteries by Simplo and Dynapack. The charging and battery-swapping ecosystem is supported by charging equipment from Delta Electronics and Phihong, the Gogoro Network operating platform, and a maintenance service network spread across Taiwan.
Industrial Policy and Support Measures
Taiwan’s electric vehicle policy covers regulation, finance, and industry. Through subsidies and demonstration projects, the government stimulates market demand while supporting local supply chains in building mass-production capacity. Public transportation electrification is being used first as a demonstration field, driving technical validation and economies of scale.
Government Promotion Strategy
Regulatory preparation includes drafting the Electric Vehicle Development Act, charging facility installation standards, a battery recycling management system, and vehicle safety certification rules. In fiscal incentives, passenger vehicle purchase subsidies reach up to NT$90,000, scooter subsidies reach NT$7,200, and buyers also receive a five-year license tax reduction or exemption, exemption from fuel tax, and preferential public parking rates. Industrial support is advanced simultaneously through an electric vehicle industry development program, subsidies for key technology R&D, industrial cluster formation, and talent development programs.
Support for R&D and Innovation
The R&D support system covers two levels: government technology projects, including the Ministry of Economic Affairs Department of Industrial Technology electric vehicle program, Ministry of Science and Technology advanced technology R&D, National Chung-Shan Institute of Science and Technology defense technology transfer to civilian use, and Industrial Technology Research Institute technology transfer; and industry-academia cooperation, including university electric vehicle programs, corporate internships, international technical exchanges, and patent portfolios. On the validation side, the Automotive Research & Testing Center (ARTC) provides battery testing, charging facility inspection, and smart driving test sites, filling the certification gap between R&D and mass production.
International Cooperation and Investment
Foreign Investment in Taiwan
Major investment cases:
Taiwanese manufacturers are deeply embedded in Tesla’s supply chain: Hota Industrial supplies drive shafts, Delta Electronics supplies charging pile equipment, Quanta is responsible for autonomous driving computers, and TSMC handles foundry production of automotive chips. Among European automakers, BMW cooperates with Tron Energy on electric buses, Mercedes-Benz has signed a solid-state battery cooperation agreement with ProLogium, and Stellantis has formed a production joint venture with Foxconn. Japanese automakers are also actively building their presence: Toyota is advancing electric vehicle cooperation through Hotai Motor, Honda has launched technical cooperation with Sanyang, and Nissan has established a battery testing center in Taiwan.
Overseas Investment by Taiwanese Manufacturers
Taiwanese manufacturers’ overseas layouts are concentrated along two axes: Southeast Asia and the United States. In Southeast Asia, Foxconn is establishing an electric vehicle production base in Indonesia, Gogoro has entered the Indian market, and Delta Electronics has set up a charging equipment plant in Thailand. In the United States, Delta Electronics is building a charging network, Quanta has established an autonomous vehicle R&D center, and Hota has set up an electric vehicle parts plant, advancing on three fronts.
Technological Innovation and R&D
Key Technology Development
Automotive semiconductors:
Taiwan has a global leading advantage in automotive chips: TSMC provides advanced processes for automotive chips, MediaTek is responsible for in-vehicle infotainment chips, Realtek focuses on automotive Ethernet chips, and Richtek supplies power management chips.
Smart driving technology:
The Industrial Technology Research Institute leads autonomous driving system R&D, the Institute for Information Industry is responsible for vehicle-to-everything communications technology, Foxconn has introduced an autonomous vehicle open platform, and Quanta provides an AI computing platform. The four institutions divide responsibilities to complete the overall technology stack.
Lightweight materials:
Formosa Plastics supplies carbon fiber composite materials, China Steel provides high-strength steel, and Formosa Chemicals & Fibre and Nan Ya are respectively responsible for engineering plastics and composite materials, jointly supporting demand for electric vehicle lightweighting.
Innovative Application Models
Vehicle-to-everything integration:
V2G bidirectional charging turns electric vehicles into energy storage nodes in the power grid. V2X communications, smart transportation system integration, and remote diagnostics further upgrade electric vehicles from transportation tools into intelligent mobility platforms.
Integration with the sharing economy:
Electric vehicle sharing services, battery-sharing networks, and charging pile sharing platforms are being tested for integration in metropolitan areas, with the goal of reducing dependence on private cars through mobility as a service (MaaS).
Challenges and Solutions
Major Development Challenges
The challenges facing Taiwan’s electric vehicle industry span technology, markets, and supply chains, and these dimensions are interconnected. On the technology side, the battery cell gap and insufficient complete-vehicle design experience raise the threshold for entering the passenger vehicle market. On the market side, limitations in domestic scale make economies of scale difficult to establish quickly, which in turn affects cost competitiveness.
Technical challenges are mainly concentrated in four areas: battery cells, where Taiwan still trails major international manufacturers; complete-vehicle design, where full model development experience is lacking; autonomous driving, where AI algorithms and sensor technologies need strengthening; and breakthroughs in fast-charging and wireless charging technologies.
Market challenges include Taiwan’s relatively small domestic demand, the technical and cost advantages of Chinese, European, and American manufacturers, insufficient charging network density, and barriers related to consumer purchase costs and habit change.
In the supply chain, key raw materials such as lithium, cobalt, and nickel depend on imports. Large-scale production experience is lacking, automotive-grade certification thresholds are high, economies of scale have not yet been established, and cost-control pressure remains.
Solution Strategies
Technology breakthrough strategy:
Strengthening international technical cooperation and licensing and establishing an automotive chip design center are short-term priorities. Investing in next-generation technologies such as solid-state batteries and developing Taiwan’s distinctive advantages are medium- to long-term directions.
Market development strategy:
Southeast Asia should be treated as the key overseas market, while supply chain partnerships should be established with international automakers. Niche markets such as electric scooters and electric buses are Taiwan’s strongest entry points and can be used to build brand recognition.
Industrial ecosystem construction:
The establishment of electric vehicle industrial clusters, the expansion of charging infrastructure, the improvement of battery recycling and reuse systems, and the cultivation of relevant professional talent are all indispensable. Together, they determine the long-term competitiveness of Taiwan’s electric vehicle ecosystem.
Future Outlook
2030 Industrial Vision
The 2030 industrial scale targets are NT$3 trillion in output value, 200,000 jobs, and a 30% electric vehicle penetration rate. Technical milestones include the commercialization of solid-state batteries, maturity of Level 3 autonomous driving, charging time shortened to 10 minutes, and driving range reaching 600 kilometers. In international positioning, the goal is to become an important electric vehicle component supply base in the Asia-Pacific region, while building Taiwan’s technology brand through the export of electric scooter technology and participation in international standards-setting.
Emerging Technology Trends
Commercialization of solid-state batteries:
After mass production, solid-state batteries are expected to achieve energy density above 400 Wh/kg, reduce charging time to 15 minutes, and offer significantly better safety than traditional liquid electrolyte solutions. The progress of ProLogium’s French plant is a key indicator for observing the commercialization timeline of Taiwan’s solid-state batteries.
Hydrogen fuel cells and smart charging:
Hydrogen fuel cells mainly target the commercial vehicle and long-distance transport markets as a supplementary solution to pure electric vehicles, requiring a supporting hydrogen supply chain. In smart charging technology, wireless charging commercialization, dynamic charging roads, solar charging stations, and smart grid integration are being tested in demonstration sites and are expected to enter the mainstream market gradually after 2030.
Policy Evolution
The direction of policy evolution covers two dimensions: regulatory improvement, including autonomous driving regulations, mandatory battery recycling rules, charging standard unification, and data privacy protection; and deepened international cooperation, including participation in international electric vehicle alliances, establishment of technology partnerships with friendly countries, promotion of the internationalization of technical standards, and construction of supply chain security mechanisms. These provide institutional support for the industry’s long-term development.
Conclusion
Taiwan’s electric vehicle industry is at a critical turning point. With its existing strengths in semiconductors, precision machinery, and information and communications technology, Taiwan has an opportunity to occupy an important position in the global electric vehicle supply chain. However, in the face of intense international competition, Taiwan must accelerate technological innovation, expand market scale, improve infrastructure, and deepen international cooperation.
The government’s 2030 vehicle electrification policy has established phased targets, and private enterprises are investing accordingly in R&D and plant construction. From Gogoro’s export of its electric scooter battery-swapping model overseas to Foxconn’s MIH platform attracting more than 2,000 companies to join, Taiwan is attempting to turn its existing manufacturing capabilities into competitive advantages in the electric vehicle era.
Over the next decade, whether Taiwan’s electric vehicle industry can secure its position as an Asia-Pacific supply chain hub will depend on the mass production of solid-state batteries, automotive chip design capabilities, and the pace of charging infrastructure deployment.
References
- Foxconn Technology Group (2024). MIH Electric Vehicle Ecosystem Development Report — The MIH platform has an alliance of more than 2,000 companies and an open electric vehicle development ecosystem↩
- Executive Yuan (2024). “2030 Passenger Transport Vehicle Electrification Promotion Plan” — 2030 electrification targets and promotion strategy for passenger transport vehicles↩
- ProLogium Technology — Official News — The Dunkirk plant in France is expected to enter mass production in 2028; 2026 was outdated information. The solid-state battery cooperation agreement with Mercedes-Benz in 2022 has been publicly confirmed. No public announcement of BMW cooperation was found↩
- Gogoro Inc. — Official Website — The battery-swapping network exceeded 2,500 locations in 2024; the number of Gogoro riders was approximately 650,000, according to 2024 official data↩
- Taiwan Stock Exchange (2024). “Electric Vehicle Industry Analysis” — Analysis of Taiwan’s electric vehicle industry chain; explanation related to Taiwan’s electric scooter fast-charging IEC standard↩